Limited Right to Sue Versus Unlimited Right to Sue
As a motor vehicle driver in New Jersey, you are subject to the state’s unique no-fault car insurance system. When it comes to purchasing car insurance, you must choose between Limited Right to Sue and Unlimited Right to Sue coverage. Learn the difference so you can make an informed decision and select the right one for your needs. If you were injured in an accident, make sure to speak with an experienced car accident lawyer in Hackensack for legal guidance.
What Insurance Is Required in New Jersey?
Automobile insurance is required of every driver in New Jersey. There are Standard and Basic Policies available. A Standard Policy comes with the following coverage:
- $25,000 bodily injury or death liability per person
- $50,000 bodily injury or death liability per accident
- $25,000 property damage liability
- $15,000 personal injury protection (PIP) insurance
Uninsured/underinsured motorist insurance is also an optional add-on. The Basic Policy does not include bodily injury liability coverage, but has the option of adding $10,000 per accident. It also has reduced coverage of $5,000 for property damage.
Two Choices for Pain and Suffering Within the Standard Policy
When you choose to purchase a Standard Policy in New Jersey, you must also decide on the rights you wish to have should you get injured in an automobile accident and wish to seek compensation for your physical pain, emotional suffering and other intangible losses. You have the option of Limited Right to Sue or Unlimited Right to Sue.
Limited Right to Sue
Limited Right to Sue, also called the verbal threshold option, limits your ability to file a claim for pain and suffering or non-economic damages against another driver or party for causing your car accident.
This form of coverage only allows you to bring a claim for non-economic damages if your injuries meet New Jersey’s serious injury tort threshold. Typically, injuries must be significant or permanent, such as multiple broken bones, disfigurement, disability, amputation, the loss of a fetus or death.
With Limited Right to Sue insurance, you agree not to hold the person who caused your auto accident responsible for your pain and suffering unless your injuries meet this threshold. Note that this option does not affect economic damages, such as medical costs, property damage and lost wages.
Unlimited Right to Sue
Should you choose to pay more and get Unlimited Right to Sue insurance on your Standard Policy, you will always be permitted to sue another driver for pain and suffering damages, regardless of the severity of your injuries or losses. This coverage will also apply to your family members if they were in your vehicle at the time of the accident.
How to Maximize Your Settlement After a New Jersey Car Accident
Under New Jersey’s no-fault laws, injured parties generally must seek financial compensation from their own car insurance policies after automobile accidents, regardless of who is at fault. To receive these first-party insurance benefits, it is not necessary to sue someone else or prove negligence.
If you wish to recover compensation beyond the limits of your own policy, consult with a car accident attorney for assistance. An experienced personal injury lawyer in Hackensack can explore and identify all your options for pain and suffering damages based on whether you have Limited Right to Sue or Unlimited Right to Sue insurance. Then, your lawyer can pursue maximum compensation in and out of the courtroom. Contact us today.